Won-Dollar Exchange Rate Steady Ahead of US FOMC (Update)

The won-dollar exchange rate is showing a stable trend.

According to the Seoul foreign exchange market on the 18th, the won-dollar exchange rate opened at 1,266.6 won, the same as the previous trading day's closing price. It then continued a slightly stable movement and as of 9:58 a.m., it is down 1.9 won to 1,264.7 won.

The won-dollar exchange rate is showing a stable fluctuation ahead of the U.S. Federal Open Market Committee (FOMC) regular meeting scheduled for the 25th-26th (local time), as caution is prevailing.

During the 'blackout' period when Federal Reserve (Fed) officials are prohibited from speaking, market participants expect the Fed to raise the benchmark interest rate this month.

Oh Chang-seop, a researcher at Hyundai Motor Securities, explained, "The Fed's rate hike in July is almost a foregone conclusion, but as inflation slows down, market opinions are divided on additional hikes in September and November. While expectations for the end of tightening are reviving risk appetite, the yuan's weakness due to poor Chinese economic indicators the previous day is mixing upward and downward factors for the exchange rate."

[Image source=Yonhap News]

This content was produced with the assistance of AI translation services.